Union Budget Neutral on Auto-Component IndustryFuture Growth ThroughInfrastructure Focus
Positive Impact on vehicle industry, No direct impact on autocomponent industry
The Union Budget announced by the Finance Minister today would nothave any incremental and direct impact on the auto-componentindustry, said Mr. J.S. Chopra, President, Automotive ComponentManufacturers Association of India (ACMA)Welcoming the thrust on infrastructure development in the Budget, Mr.Chopra said that the increase in the outlays for NHAI and JNNURMwould fuel growth in the automotive industry in the medium to longterm. The auto-component industry would be an indirect beneficiary of this growth. The focus on infrastructure, through the various schemes,will have a positive impact on economy. Increased infrastructurespending will have a direct and positive impact on the automotiveindustry. The removal of FBT is also a welcome step, said Mr. Chopra.Mr. Chopra also expressed satisfaction that the Finance Ministerrecognised the challenging times being faced by the domestic industryduring this time of recession and did not further bring down the ratesof Customs Duty this year., which was one of the demands of ACMA.Furthermore, by retaining the Excise Duty at 8%, the Finance Ministerhas ensured that the stimulus provided to the industry earlier in theyear would be continued till the industry fully recovers from thecurrent recession. Mr. Chopra also welcomed the Finance Minister’s announcement thatfull GST would be implemented in 2010. However, there was noannouncement in regard to further reduction in the CST rate this year,he added.